Mayor Cherelle Parker’s H.O.M.E. initiative, which she is asking city council to approve during spring budget negotiations, has an eye-popping $2 billion price tag. But very little of that would come out of the city budget next year if lawmakers approve her plan. Approximately $800 million would come from sales of city bonds that would be paid back over 20 years, and an additional $1 billion represents the estimated value of city-owned land that the administration is hoping to transfer to private developers to build housing. Most of the remaining $200 million for the project would come from a variety of government programs, and Parker is also hoping the philanthropic community will contribute to the effort. Philadelphia’s recent city bond issuances have carried interest rates of about 4% to 5%. The interest rates for the H.O.M.E. bonds could be higher than what the city typically pays. Council members have mostly applauded Parker’s decision to make housing a priority, although some have raised questions about the details of her plan, including its reliance on debt financing. Read more here.
Source: Philadelphia Inquirer; 4/18/2025